Canada Nickel Closes US$12M Loan, Well-Positioned for Development

About Canada Nickel

Canada Nickel Company Inc. is a Canadian mining company focused on the next generation of nickel-cobalt projects to deliver essential battery metals. The company is advancing development of its flagship Crawford Nickel-Cobalt Sulphide Project to provide nickel and cobalt for surging electric vehicle and stainless steel markets.

With a view towards zero carbon metal production, Canada Nickel has applied to trademark NetZero NickelTM, NetZero CobaltTM and NetZero IronTM in multiple jurisdictions. The company aims to develop processes allowing low-carbon nickel, cobalt and iron end products.

Strategically focused on nickel and cobalt resources in low political risk jurisdictions like Canada, Canada Nickel offers investors leveraged exposure to battery metals. The company's anchor asset is the wholly-owned Crawford Project in Ontario’s Timmins-Cochrane mining camp.

Closing of Auramet Loan Provides Funding for Project Advancement

Canada Nickel recently announced the closing of a US$12 million secured loan facility with Auramet International. The proceeds will provide working capital as Canada Nickel continues permitting and engineering activities at its flagship Crawford Nickel-Cobalt Sulphide Project.

The loan has a 1% monthly interest rate and 2.3% arrangement fee. Auramet also received 550,000 one-year warrants with a C$1.24 strike price. The loan is due on December 18, 2023 and has customary positive and negative covenants.

About Auramet

Auramet International is one of the largest physical precious metals merchants globally. Auramet has an extensive track record in the metals sector.

Established in 2004, Auramet is a private company with over $20 billion in annual revenues. It provides a full range of services across the precious metals supply chain.

Auramet has assembled a global team of industry specialists with over 350 years of combined experience. The management team has consistently built a successful and prominent franchise in metals, known for innovation and high-quality service.

The company's main activities are physical metals trading, merchant banking including direct lending, and project finance advisory. In 2022, Auramet purchased over 5 million ounces of gold, 78 million ounces of silver, and 3.9 million ounces of PGMs. It has provided over $1 billion in financing to date.

Auramet plans to grow its capital investment business in mining equity, royalties and streams, focused on precious and battery-related metals. It has been awarded a Gold Medal by EcoVadis for its ESG commitment, positioning Auramet as a trusted lender in the sustainable mining space.

Crawford Project Poised to Capitalize on Nickel Demand

The Crawford Project, located in Ontario's Timmins-Cochrane mining camp, is Canada Nickel's flagship asset. With nickel demand expected to surge for electric vehicle batteries and stainless steel, the project is strategically positioned to capitalize.

Crawford hosts a large resource base with excellent potential for expansion. An updated Preliminary Economic Assessment released in 2021 outlined an 18-year mine life producing an average of 75 million pounds of nickel annually.

The project benefits from excellent infrastructure, including year-round road access and proximity to rail, power and workforce. Canada Nickel has already received environmental assessment approval from the Impact Assessment Agency of Canada.

Advancing Towards Development with a Focus on ESG

Canada Nickel is advancing Crawford through permitting, piloting and engineering. The company aims to make a construction decision by the end of 2023.

The company has applied to trademark NetZero NickelTM, NetZero CobaltTM and NetZero IronTM. This highlights a focus on developing processes for zero carbon metal production.

Canada Nickel's ESG commitment is also demonstrated by an EcoVadis Gold Medal rating. This emphasizes environmental and social responsibility across the mining lifecycle.

Well-Positioned with a Strong Cash Position

With the Auramet loan closed, Canada Nickel is in a strong financial position with minimal dilution for shareholders. The company had already completed an oversubscribed C$10 million equity financing in early 2023.

As of June 30, 2023, Canada Nickel held C$6.7 million in cash. With the loan proceeds, the company is well-funded through feasibility and into a potential construction decision.

Conclusion

With Crawford's large resource, excellent infrastructure and strategic nickel focus, Canada Nickel is positioned to capitalize on the battery metals boom. The Auramet loan provides funding to continue advancing the project while minimizing dilution for shareholders.

Canada Nickel's focus on ESG, including zero carbon metals, further differentiates the company in a rapidly evolving mining landscape. For investors seeking nickel and battery metal exposure, Canada Nickel presents an attractive opportunity. With the project clearly advancing towards development, the company warrants ongoing investor attention.